Mario Talamantes Professor Vijayan MGMT 9/18/2013
Changing Environments
External organizational environments affect the decisions and performance of a company which are forces and events outside a company that have the potential to influence or affect it. There are three basic characteristics of changing external environments: environmental change, environmental complexity, and resource scarcity. These are three major factors that work together on a daily basis to help maintain a business operational.
There are two types of environmental rate changes at which a company's general and specific environments change; stable and dynamic environments. A stable environment rate change is slow, for example food businesses have variables that do not often change like dairy items, fresh produce, and meat. On the other hand, dynamic environments change rapidly because of the changing market and demands. All gaming platforms are highly dynamic because of the intense competition that brings rapid changes in gaming technology.
Environmental complexity is the number of components in an organization's environment and the extent of the organization's knowledge about those components. Simple environments have few factors that are needed to contribute to the organization which makes the organization less complex but, very simple with strong factors that keep the business operational. Always having to check on competitors pricing, similar products, and also examining how they treat their customers besides selling their products. Businesses of many kinds have their own complexities and factors within them to help them meeting customer demands.
Resource scarcity is the shortage or abundance of critical organizational resources in an organization's external environment for example, the basic economic problem that arises is people having unlimited wants but limited resources. Not having enough